For Forex traders, Friday is often referred to as Magic Friday. It is said that many people lose big on Fridays, but why is that? I will explain why there are many people who lose only on Fridays.
Many people lose big on Fridays
Many people say that they lost big money every Friday and threw out all their profits for the week. What’s actually happening on Friday?
tend to create trends
Trends tend to be born on Fridays, and they often move unilaterally. From Monday to Thursday, there were only ranges, so there are many people who have become completely accustomed to the trend and lose big when the trend emerges.
many economic indicators
One of the reasons why trends are more likely to occur on Fridays is the economic indicators. In particular, the US unemployment rate will be released on Friday European time. As a result, the market, especially the US dollar, has become turbulent, and many people have lost a lot.
try to recover the loss
Friday is the last forex day of the week. At this time, people who are negative this week tend to raise lots on Friday in an attempt to recover everything at once. As a result, the odds of winning are lower than usual, and the odds of losing big are higher.
Trades that avoid crossing the week
After Friday, the market is closed and no trading is possible until Monday. Windows may open during this time. There are often traders who lose a lot because of this, but there are cases where the deficit swells as a result of starting a strange trade in an attempt to close the position as soon as possible and end it with a positive position as much as possible.
All of the above patterns often lead directly to mental problems. Mental influences trading more than you think. Emotions are what’s going on in your mind that make you act regardless of what’s going on in your chart. And it will lead to big losses. If you feel like you’re going to lose on Friday, you have the option of not playing in the first place.
Avoid crossing the week
After Friday ends, the position cannot be increased or closed until Monday. It’s not uncommon for big events to happen on Saturdays and Sundays, and on Mondays the big windows open. If you’re worried, it’s important to close as early as possible on Friday. The most important thing in trading is not winning. The most important thing is not to lose.
XM is recommended
XM was originally known as a forex company with too wide spreads. But this was only recently. Now there is an account type called KIWAMI account. The spread is very narrow and very suitable for trading. Therefore, this account type is highly recommended. Especially for those who trade in pounds, it is recommended because the spread is extremely narrow.